Increasing Corn & Wheat Prices Ride Growing Worldwide Demand

(WACO, TX) Despite trade tensions around the globe, world demand for grain products has been steadily growing. That growth is coming from the developing markets says Dr. Jason Johnson, Texas A&M AgriLife Extension economist. The U.S. corn crop has been plentiful over the past few years as world production has been dominated by the U.S. and China. Harvest averages have been 171 bushels to 178 bushels per acre. Domestic ethanol production and export demand have helped with demand. Johnson told producers at the Blackland Income Growth Conference that price projections for corn are $3.50-$4.40 per bushel for 2019 with an average price projection of $3.90 per bushel. Wheat prices are projected at $5.74 a bushel, the highest price projection since 2015, primarily due to worldwide demand. For the cattle industry, it spells good news, since feeding margins are heavily dependent on grain prices.